Chesapeake Energy (CHK) will allow ex-CEO Aubrey McClendon to acquire oil and gas holdings adjacent to CHK's wells in which he is a part-owner, altering the terms of an earlier agreement. CHK will pay McClendon nearly $50M in severance and allow him the use of a company aircraft. The relaxed terms ought to come in handy as he opens a new energy business a half-mile from his old office. [View news story]
Aubrey made this company. Running an E & P (how many of you know what that means) is not like running a bank. Coming from a startup to one of the largest producers takes talent. $50 million is chickenfeed as compared to the assets he built in CHK. How many of you critics have really built anything outside of critical comments. CHK's stock price is now about 400 % greater than the S&P 500 since 1993 when CHK was started. Certainly not a disaster like Enron.
Chesapeake Energy: Increasing Solvency For A Long Recovery [View article]
How exactly did McClendon fail shareholders?
I strongly back Factzplz's comments. Aubrey built this company into a giant with substantial assets. He was done in by low gas prices but that will self correct over time. I personally get tired of all the Wall Street blowhards that have never built anything outside of a trading operation but are experts on how to manage everything. It takes far more skill to manage an E & P operation than most any other business. I wouldn't invest a penny with you if you tried to duplicate what Aubrey did!
I have had a sizable position in CHK for over 12 years but I will be watching the new man carefully to see if I will keep that position.
TPG-Axon increases its stake in SandRidge Energy (SD) to 36.2M shares from 33M at 2012's end. The deadline for voting on TPG's bid to replace the board is March 15. Between TPG and Leon Cooperman - who sounded on last week's CC like he's had it with management - that's more than 70M shares vs. a float of nearly 500M. Shares +0.7% AH. [View news story]
I don't trust hedge funds!!
Better the devil that knows something about E & P than the devil that only knows about financial manipulation.
Energy trusts (SDT, PER, SDR) all take hits after announcing dividend and production cuts last night (I, II, III), and Raymond James does not pass "Go," downgrading the group to Sell from Buy. These new trusts are misunderstood, says one trader long the names. The wells are still getting drilled and there's going to be volatility in production volumes. They're cheap by any metric and - unlike MLPs - they're debt-free, having no need to issue debt (or shares) to replace depleting assets. [View news story]
To all who have been knocking CHK and SD I suggest you read the following article re the consequences of hedge fund takeover of these stocks:
eBay Is Finally Set To Take On Amazon Head-To-Head [View article]
I buy both on Ebay and Amazon. While Ebay maybe cheaper on some occasions I will usually still buy on Amazon because if there is a problem (or even if there is no problem) I can easily return the purchase. I don't have to check out the seller.
Amazon will start charging sales tax in my state next year. I may reevaluate the comparison at that time, meanwhile I spend 95% of my money on Amazon and 5% on Ebay.
Everything Is Coming Together For Delta [View article]
Thank you for this comment. This will reinforce the idea that the airlines are bad investments so I can further accumulate shares. Only smart investors will look at the charts of the airlines and realize there is a turnaround in the making and realize there is money to be made without excessive risk (like Apple was).
This Oil & Gas Stock Should Surprise You In 2013 [View article]
This is the man who grew this company into the second largest producer of NG. He went out and accumulated an enormous number of leases that will keep him drilling for many years. We will be entering the payoff from these leases soon. The profits will grow much faster because he doesn't need to continue to spend enormous amounts on leases and landsmen.
Of course there is no guarantee but that is investing in the market.
I have a substantial position in CHK which will be eliminated if Aubrey is booted. I don't want any banker running this company.
I say thanks to all the moralists that drove the price of this stock down. The few of us investors who didn't pillory Aubrey and bought shares will reap the profits from your losses.
This Oil & Gas Stock Should Surprise You In 2013 [View article]
You have been a nitpicker for some time on CHK. You keep analyzing the nitty gritty details while I have been making money as CHK has risen. I've been in this game for over 60 years and I've found that those who chase the nitty gritty details usually miss the moves and make far less because they have their noses in balance sheets and income statements and never make the investment.
This Oil & Gas Stock Should Surprise You In 2013 [View article]
Don't think you know much about E&P business. The assets they sold are mostly fixed assets that are bundled and sold to investors for income like bonds but they do provide a higher yield than most bonds. The problem I have found with these investments is they are a pain to report on your income tax returns.
On the other hand CHK has made a lot of money by leasing drilling rights and selling off some of the less desirable leases to others at several times their cost to CHK. That is what I would call a cash cow. Also, it is not uncommon to drill a well that returns 100% or more on the investment. That is far, far greater return on their investment than what Midstream would return.
Buy Chesapeake And Get Rich: The Story Of Immense Energy Resources [View article]
When I was a trader on the CBOE some 40 years ago Mr. Icahn did a lot of trading on our exchange so we got to know him pretty well, not personally, but from his trading. I wouldn't take the opposite side of his trade. You don't make billions in the market being stupid.
I've traded for some 60 years and one thing I know: the smart guys that analyze balance sheets and run all the numbers don't make the money that smart traders who look at the charts, look at the players, look at market conditions and know risk management make.
BTW, I've just finished reading Dark Pools. I recommend the book to anyone trading the stock market. The book is misnamed in that he doesn't write much about dark pools but instead gives the history of high frequency trading and the electronic markets.
This whole business of high frequency trading, changing the short selling rules etc etc has disturbed me so much that I'm thinking about pulling out of the market. I can see that its going to get harder and harder for the individual to make a buck with the dark pools, hedge funds and large traders controlling the market. Congress starves the SEC so Wall Street runs the country.
Buy Chesapeake And Get Rich: The Story Of Immense Energy Resources [View article]
Its amazing to me that a smart investor like Icahn would invest in CHK being ignorant of their problems that Mark Anthony possesses. He must not have done proper due diligence.
Of course, there is the faint possibility that said Mr. Anthony is a shrill for the shorts.
Chesapeake (CHK +0.6%) hires James Webb as its new, full-time legal counsel as it tries to recover from damaging reports about controversial land deals in Michigan and CEO Aubrey McClendon's personal loans. Webb has been a longtime partner in Oklahoma's largest law firm; maybe he'll know how to tell Aubrey "no." [View news story]
You have stated the case for Aubrey better than anyone.
The anti-Aubrey comments here amaze me. Mainly they come from those who obviously have little knowledge of the industry. This is a high risk business where you spend millions to poke a hole in the ground hoping something will come out of that hole to repay your investment. This is unlike most other businesses and it takes a unique personality to make a go of it. A banker would never be able to build the business Aubrey has.
If you don't have the stomach for high risk investing go buy some bank stock and start moralizing about the bankers.
The latest sign of Chesapeake's (CHK) comeuppance: It's putting up for sale the Fort Worth highrise it bought in 2008 for $104M that symbolized the company's boom times. The building should attract plenty of interest but probably not at the 2008 price; for CHK, getting high prices for its assets is important as it seeks to raise at least $13B this year. [View news story]
It tells me that you don't know when to buy & sell and when to exit a position that is going south on you. And stop believing everything you read here!
Chesapeake Energy (CHK) will allow ex-CEO Aubrey McClendon to acquire oil and gas holdings adjacent to CHK's wells in which he is a part-owner, altering the terms of an earlier agreement. CHK will pay McClendon nearly $50M in severance and allow him the use of a company aircraft. The relaxed terms ought to come in handy as he opens a new energy business a half-mile from his old office. [View news story]
Chesapeake Energy: Increasing Solvency For A Long Recovery [View article]
I strongly back Factzplz's comments. Aubrey built this company into a giant with substantial assets. He was done in by low gas prices but that will self correct over time. I personally get tired of all the Wall Street blowhards that have never built anything outside of a trading operation but are experts on how to manage everything. It takes far more skill to manage an E & P operation than most any other business. I wouldn't invest a penny with you if you tried to duplicate what Aubrey did!
I have had a sizable position in CHK for over 12 years but I will be watching the new man carefully to see if I will keep that position.
TPG-Axon increases its stake in SandRidge Energy (SD) to 36.2M shares from 33M at 2012's end. The deadline for voting on TPG's bid to replace the board is March 15. Between TPG and Leon Cooperman - who sounded on last week's CC like he's had it with management - that's more than 70M shares vs. a float of nearly 500M. Shares +0.7% AH. [View news story]
Better the devil that knows something about E & P than the devil that only knows about financial manipulation.
Energy trusts (SDT, PER, SDR) all take hits after announcing dividend and production cuts last night (I, II, III), and Raymond James does not pass "Go," downgrading the group to Sell from Buy. These new trusts are misunderstood, says one trader long the names. The wells are still getting drilled and there's going to be volatility in production volumes. They're cheap by any metric and - unlike MLPs - they're debt-free, having no need to issue debt (or shares) to replace depleting assets. [View news story]
http://reut.rs/14GvIEN
eBay Is Finally Set To Take On Amazon Head-To-Head [View article]
Amazon will start charging sales tax in my state next year. I may reevaluate the comparison at that time, meanwhile I spend 95% of my money on Amazon and 5% on Ebay.
SandRidge Energy, Inc. Agrees to Sell Permian Assets for $2.6 Billion In Cash [View article]
Everything Is Coming Together For Delta [View article]
This Oil & Gas Stock Should Surprise You In 2013 [View article]
Of course there is no guarantee but that is investing in the market.
I have a substantial position in CHK which will be eliminated if Aubrey is booted. I don't want any banker running this company.
I say thanks to all the moralists that drove the price of this stock down. The few of us investors who didn't pillory Aubrey and bought shares will reap the profits from your losses.
This Oil & Gas Stock Should Surprise You In 2013 [View article]
This Oil & Gas Stock Should Surprise You In 2013 [View article]
On the other hand CHK has made a lot of money by leasing drilling rights and selling off some of the less desirable leases to others at several times their cost to CHK. That is what I would call a cash cow. Also, it is not uncommon to drill a well that returns 100% or more on the investment. That is far, far greater return on their investment than what Midstream would return.
Buy Chesapeake And Get Rich: The Story Of Immense Energy Resources [View article]
I've traded for some 60 years and one thing I know: the smart guys that analyze balance sheets and run all the numbers don't make the money that smart traders who look at the charts, look at the players, look at market conditions and know risk management make.
BTW, I've just finished reading Dark Pools. I recommend the book to anyone trading the stock market. The book is misnamed in that he doesn't write much about dark pools but instead gives the history of high frequency trading and the electronic markets.
This whole business of high frequency trading, changing the short selling rules etc etc has disturbed me so much that I'm thinking about pulling out of the market. I can see that its going to get harder and harder for the individual to make a buck with the dark pools, hedge funds and large traders controlling the market. Congress starves the SEC so Wall Street runs the country.
SAD!
Buy Chesapeake And Get Rich: The Story Of Immense Energy Resources [View article]
Of course, there is the faint possibility that said Mr. Anthony is a shrill for the shorts.
Chesapeake (CHK +0.6%) hires James Webb as its new, full-time legal counsel as it tries to recover from damaging reports about controversial land deals in Michigan and CEO Aubrey McClendon's personal loans. Webb has been a longtime partner in Oklahoma's largest law firm; maybe he'll know how to tell Aubrey "no." [View news story]
The anti-Aubrey comments here amaze me. Mainly they come from those who obviously have little knowledge of the industry. This is a high risk business where you spend millions to poke a hole in the ground hoping something will come out of that hole to repay your investment. This is unlike most other businesses and it takes a unique personality to make a go of it. A banker would never be able to build the business Aubrey has.
If you don't have the stomach for high risk investing go buy some bank stock and start moralizing about the bankers.
The latest sign of Chesapeake's (CHK) comeuppance: It's putting up for sale the Fort Worth highrise it bought in 2008 for $104M that symbolized the company's boom times. The building should attract plenty of interest but probably not at the 2008 price; for CHK, getting high prices for its assets is important as it seeks to raise at least $13B this year. [View news story]
Chesapeake Could Slip To $13 Lows By 2013 [View article]